TSMC Reports Second-Quarter Results This Week: What to Expect

Taiwanese semiconductor company produces most of the world’s advanced chips, and demand from the generative AI boom is expected to boost its profits by 30% year-over-year.

The Taiwanese chipmaker is expected to report net income of NT$236.4 billion, or $7.3 billion, for the second quarter of 2024, according to analyst estimates from FactSet — a 30% increase from a year ago, when it reported profit of NT$181.8 billion. TSMC, which has an exclusive partnership with AI chip designer Nvidia and makes chips for Apple, has seen its shares rise 82.9% this year. The chipmaker will report second-quarter earnings on Thursday.

In June, TSMC announced that its May net income increased by 30% year over year to $7.1 billion. While that was down 2.7% from April, the company’s revenue in the January-May period was up 27% year over year. Earlier this month, TSMC President and CEO CC Wei confirmed previous forecasts that the integrated circuit market, excluding memory, will grow 10 percent this year, driven by the artificial intelligence boom.

TSMC predicted its April Q2 sales could rise by as much as 30% — more than expected — from customers including Nvidia and Apple. Second-quarter revenue was expected to be $19.6 billion to $20.4 billion, up from a previous estimate of $19.1 billion. TSMC also said it maintained plans to spend up to $32 billion this year, most of which would be on advanced technologies.

“As we enter the second quarter of 2024, we expect our business to be supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality,” said Wendell Huang, senior vice president and chief financial officer of TSMC. statement in April.

Earlier this year, TSMC received $6.6 billion in federal CHIPS and Science Act grants to support its first major U.S. chip manufacturing center in Phoenix. TSMC has already done so two chip manufacturing plants in Arizona Production is expected to begin between 2025 and 2028, with part of the new funding set to go towards build a third facilityincreasing the company’s investment from $40 million to $65 million.